Sen. Rick Scott Introduces Bill Authorizing Use of Tariffs to Address Trade Deficits

The bill would allow the U.S. Trade Representative to negotiate trade agreements with countries identified as ‘trade deficit economies.’

Sen. Rick Scott (R-Fla.) speaks during the Conservative Political Action Conference (CPAC) in Grapevine, Texas, on March 28, 2026. Leandro Lozada/AFP via Getty Images

Sen. Rick Scott (R-Fla.) on Aug. 6 introduced legislation that would create a congressional framework authorizing the use of tariffs to address trade imbalances with trading partners.

The legislation, dubbed the Trade Deficit Elimination Act, would require the U.S. Trade Representative (USTR) to identify each year countries with which the United States runs trade deficits and adjust tariffs on their imports to close the gap, in addition to any existing tariffs.

“Previous generations of Americans gave us an economic superpower; it’s our job to preserve what they built and to leave America better than we found it for our children and grandchildren,” Scott said in a statement. “That means we can’t let other countries rip us off.”

The bill, co-sponsored by Sens. Kevin Cramer (R-N.D.) and Tim Sheehy (R-Mont.), would also require the USTR to create a list of countries identified as “trade deficit economies” and allow the agency to negotiate trade agreements with those countries to address trade imbalances.

The USTR would still be required to consult with the House Committee on Ways and Means and the Senate Finance Committee before imposing or modifying any tariffs, according to the full text of the bill.

It also includes a provision allowing tariff exemptions on products deemed critical to national security, essential supply chains, and materials that cannot be grown or produced in sufficient quantity in the United States.

Cramer said the legislation would give President Donald Trump and U.S. Trade Representative Jamieson Greer the tools to address trade deficits with trading partners while preserving critical supply chains and securing trade agreements that benefit American manufacturers and workers.

“Trade should be fair, not one-sided, and it’s refreshing to have a president who isn’t afraid to hold our trading partners accountable,” Cramer said in the statement.

Trump last year invoked the International Emergency Economic Powers Act (IEEPA) to impose tariffs on trading partners, saying they were needed to regulate international transactions in response to what he called “an unusual and extraordinary threat” to national security.

The Supreme Court later invalidated the tariffs, finding that the law did not clearly authorize tariffs. The Trump administration has since been looking at alternative legal avenues to address trade imbalances with trading partners.

In February, Trump imposed a 10 percent global tariff through a presidential proclamation invoking Section 122 of the Trade Act of 1974. The tariff took effect on Feb. 24 and expired on July 24.

The president later replaced it with tariffs ranging from 10 percent to 12.5 percent on 60 trading partners over their alleged failure to prevent imports made with forced labor.